Break Out Trading Strategy!!!#BreakoutTradingStrategy

🔍 1. Identify Key Levels

Look for:

Horizontal resistance (multiple rejections at same level)

Triangle / Flag patterns

Previous Day High (PDH) / Previous Day Low (PDL)

> 📌 A valid breakout level should have at least 2–3 touches and strong rejections earlier.

⚡ 2. Entry Rules

✅ Bullish Breakout Entry (Long):

Price breaks above resistance or consolidation range with high volume

Price is above 20 or 50 EMA

Wait for:

Break + Close above level on 5-min/15-min candle

OR small pullback after breakout (break & retest)

❌ Bearish Breakout Entry (Short):

Price breaks below support with high volume

Price is below 20 EMA or 50 EMA

Same rules: either enter on candle close or retest

📉 3. Stop Loss Placement

Just below the breakout level (for long trade)

OR just above breakdown level (for short trade)

OR below/above previous candle low/high

> ❗ Avoid entering breakouts during low volume or sideways zones — those are likely fakeouts.

🎯 4. Target Levels

First target = Size of consolidation zone or pattern

Second target = Fibonacci extension or recent swing high/low

You can trail SL with 9 EMA or ATR

📊 5. Volume Confirmation

> 🔍 Breakouts with high volume = genuine

Breakouts with low volume = potential fakeout

Look at Volume spike (above average volume on breakout candle)